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14 Cards in this Set
- Front
- Back
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Part of org in which a manager is responsible only for costs |
Cost center |
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Practice of delegating decision-making authority to lower level mgmt |
Decentralization |
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AftTx Oper inc - dollar cost of capital employed |
EVA |
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Minimum ROI required to accept an investment |
Hurdle rate |
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Part of org in which mgr is responsible for sales, costs and investment |
Investment center |
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All assets acquired to generate income |
Operating assets |
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Earnings before interest and taxes |
Operating income |
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Part of org in which mgr is responsible for both sale & cost |
Profit center |
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Diff between oper inc and minimum dollar return required on operating assets |
Residual income |
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Segment of business in which mgr is accountable for a specific set of activities |
Responsibility center |
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Profit (earnings) per dollar of investment; marg x t/o Oper inc / avg Oper assets |
Return on investment (ROI) |
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Part of org in which mgr is responsible only for sales |
Revenue center |
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Price charged for component or service by selling div to buying div of same co |
Transfer price |
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Sales / avg oper assets |
Turnover (t/o) |
